Inflation and the Federal Reserve Fiat System
recently engaged in an email exchange with a reader. He was interested in finding out more information about the subjects broached in my article about the financial mess in Iceland released earlier this year. I assumed he was looking for information about central banking and told him about a book I had read years ago called “The Creature From Jekyll Island” by G. Edward Griffin. This is a book written by a highly respected author that tells of the secretive creation of the Federal Reserve.
To begin with, I told him that I feel the current system is immoral and that is what I base my opinion on. When the power to print the money people use is given to a very few people, then those people become very powerful, too powerful. I believe those people have, without a doubt, abused the power they were entrusted with for their own benefit.
Anyway, this particular gentleman is almost done with “The Creature From Jekyll Island” and he had a couple of questions for me. I’m paraphrasing here, but he basically asked me why, if fiat money is really just worthless, counterfeit notes, would the Federal Reserve want to get their money back? He then went on to ask about inflation and wondered how anyone would know more money was in circulation if that was its cause. The following is part of the answer I gave him.